Stage6 video portal shuts down

DivX is shuttering its Stage6 video sharing portal, admitting it was chewing resources it does not have. DivX launched the service to showcase its media player technology. It attracted nearly a million users but without revenue to pay for the high cost of quality video delivery it was doomed.

In the end, DivX could not even find a buyer for the portal. According to DivX: "So why are we shutting the service down? Well, the short answer is that the continued operation of Stage6 is a very expensive enterprise that requires an enormous amount of attention and resources that we are not in a position to continue to provide."

It is another case where the superior technology does not necessarily win. Market titan YouTube may have inferior quality to almost all the would-be portals, but is the accepted go-to site for user-generated content. And the imminent arrival of Adobe's next-generation-player software is likely to narrow the quality gap significantly. This will further challenge the various proprietary providers, all of whom are paying a high price to serve bandwidth chewing video with little to show for it other than invoices from their CDN provider.

For more;
- DivX closes its Stage6 portal Feb. 28 Statement and Blog
- DivX finally shuts Stage6 video portal Article

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